Despite a challenging global backdrop, Gleeds’ latest Market Report has revealed a cautious optimism amongst UK construction professionals in the wake of the Chancellor’s Spring Statement. In the consultancy’s 1Q 2025 survey, 65% of those quizzed said they were either somewhat or very confident in the future of the sector following Reeves’ announcements last month.
The raft of measures, which included £2 billion for social and affordable housing, £625 million for training up to 60,000 new workers, and £13 billion capital infrastructure spending over the next five years, received a mixed response in March. However, having had time to digest the details, it appears some are now feeling more positive, with around a third of respondents forecasting an increase in tender opportunities this year compared with 2024.
In contrast, some raised concerns about the Chancellor’s references to a “changing world” and ensuing volatility which they felt could have a negative impact on potential investors. As a result, investor confidence was cited as one of the key threats to the industry moving forward, alongside ongoing global tensions and inflation.
Brian McArdle, Gleeds’ Managing Director in the UK, said, “It’s been a fairly explosive start to the year. Donald Trump’s tariff announcements made waves worldwide, while Rachel Reeves attempted to steady the ship here at home with her Spring Statement. Perhaps unsurprisingly though, global tensions and investor confidence are still perceived as being the biggest threats to growth for the sector as uncertainty abounds.”
“While the Chancellor expressed confidence that her measures would yield results, our Market Report suggests that construction professionals are remaining cautiously optimistic about what the future holds, with over half having noticed a reduced appetite for risk from contractors over the first quarter. The next few months will certainly be interesting, as we see how Trump’s tariffs and Reeves’ promised boosts to spending alter the construction landscape in the UK.” he went on to add.
